Curro Private Schools in Langebaan sells 26% to Paladin Capital

Cape Town – Paladin Capital, PSG’s preferred investment vehicle, has bumped up its stake in Curro, a private education venture, to 76%.

In releasing results for the year ended February on Tuesday, Paladin, which already owned 50% of Curro, disclosed the purchase of a further 26% stake for R52m.

The latest transaction infers a value of around R200m for Curro, which operates private schools in Durbanville, Roodeplaat, Hazeldean and Langebaan.

Curro, which has set a medium-term target of opening 15 schools around SA, is set to open schools in Hermanus and Bankenveld next year.

Paladin has also helped Curro to secure a R73m ten-year, fixed rate loan facility from the International Finance Corporation.

Paladin reported that the intrinsic value of its portfolio had leapt 140% to R1.17bn. With additional shares in issue following Paladin’s listing on the AltX in September last year, the increase in intrinsic value on a per share basis was 65% to 203c/share.

It reported that its most recent intrinsic value estimation, which is after the financial year end, was 212c/share.

That means Paladin’s shares, which closed at 230c on the JSE on Tuesday, are trading at a premium to the last stated intrinsic valued.

It’s unusual for an investment company to trade at a premium to the underlying value of its investments, unless the market is certain the company is markedly undervaluing one if its unlisted investments.